Advise the parties on their rights and liabilities under the charter-party.?
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On the 1st of January 2008 the British vessel Grim Reality is chartered for a period of 24 months. Hire is to be paid monthly in advance, and the charter-party is subject to English law. The ship’s operation during the first three months’ of the charter ran smoothly, with charterers paying on time the hire for January, February and March 2008. However, on 1st April 2008, and whilst Grim Reality was proceeding to her destination, Britain declares war against Ruritania and the ship is requisitioned for use by British military forces for a period of two months. The charter-party does not contain any provision regulating such circumstances, and Shipowners claim that the contract (charter-party) has been frustrated. Advise the parties on their rights and liabilities under the charter-party.
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Answer:
A charter-party is a written contract between shipowner and charterer whereby a ship is hired; all terms, conditions and exceptions are stated in the contract or incorporated by reference. Because the charter-party does not contain any provision regulating such circumstances they can not make such a claim.
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